KLONDIKE SILVER CORP.

FOR IMMEDIATE RELEASE

TSXV: KS

www.klondikesilver.com                                                                                                     

October 16, 2007                                                                                          

REEVES LAKE PROPERTY ACQUIRED

Klondike Silver Corp. (TSXV: KS) is pleased to announce, subject to regulatory approval, the acquisition of a 100% interest in the Reeves Lake Property, located in Milner Township, Larder Lake Mining Division, Ontario approximately 6 kilometres southwest of Gowganda, Ontario.  Consideration for the Property consists of $10,000 and a further $40,000 in cash or the equivalent value in shares, issued over a period of 24 months.  There is also a 2% net smelter return payable, half of which may be purchased for $500,000 and the balance of the royalty interest (1%) for a further $500,000.

The Reeves Lake Property consists of eight claims totaling eight units that are accessed by paved and dirt roads. Historical shafts and trenches were sunk on the property from the 1920’s to the 1960’s.  Little work has been done since the 1960’s to explore silver-nickel-cobalt bearing veins.   The Reeves property is contiguous with Klondike Silver’s South Bay and Maralgo Properties.   The 3 properties will form Klondike Silver’s Milner Silver Project.

Klondike Silver has contracted Geotech to fly the state-of-the-art VTEM B-Field airborne system to help identify the strike and depth extent of silver mineralized structures on all three properties of the Milner Project.  Survey results will be used in conjunction with surficial mapping, geochem and trenching to identify targets for drilling and trenching.

On behalf of the Board of Directors
KLONDIKE SILVER CORP.

“Richard W. Hughes” (signed)
President

For Further Information Contact: The Hughes Exploration Group at (604) 685-2222

Or visit the Company’s website:  www.klondikesilver.com to see the Smartstox Report in which Stanlie Hunt interviews Klondike Silver Corp. President Richard Hughes.

This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the corporation’s control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.